Outsourcing firm Capita, which runs a wide range of services for Barnet Council, has reported a pre-tax loss of more than £500 million for 2017.

The firm has announced a cash call to raise £700m from existing shareholders and a strategy to make the business more efficient as it looks to shore up its finances.

It plans to make cost-saving measures of up to £175m a year but did not say whether there were any plans for job cuts.

The company’s pre-tax losses jumped from the £90 million reported in 2016 due to restructuring, write-offs and contract problems.

Capita has contracts worth more than half a billion pounds with Barnet Council as part of the One Barnet transformation plan, under which it provides a range of services including highways services, funeral services and pensions administration.

The council says the contracts save council tax-payers millions of pounds, but firm has come under fire for ‘serious failings’ in pension management and has been fined by the council for not providing services it had paid for.

Last week, Cllr Sury Khatri took aim at Capita during a speech to the Audit Committee in which he gave his backing to Labour candidates in the upcoming council elections.

A statement from Capita said: “Capita believes that under its new strategy, through introducing greater rigour in how it operates, together with re-focusing the business on its areas of strength, it will deliver enhanced performance through increased simplification, efficiency, standardisation and focus.”

A spokesperson for Barnet Council said: “The council regularly reviews the financial status of major suppliers as part of contract management and contingent planning arrangements.

“Today’s announcement from Capita is in line with the information provided to the market in January and does not therefore raise any new issues for the council.”